OpenAI, the artificial intelligence powerhouse behind ChatGPT, is facing scrutiny after whistleblowers called for the Securities and Exchange Commission (SEC) to investigate the company's non-disclosure agreements (NDAs). The whistleblowers, represented by "one or more anonymous and confidential" individuals, allege that OpenAI's NDAs illegally restrict employees from speaking out about the risks associated with its AI technology.
A letter addressed to SEC Chair Gary Gensler, dated July 1, urged the agency to enforce rules against NDAs that prevent employees or investors from raising concerns with regulators. This letter follows a formal whistleblower complaint recently filed with the SEC. The Washington Post first reported on the letter, which was subsequently shared with The Associated Press by U.S. Senator Chuck Grassley's office.
"OpenAI's policies and practices appear to cast a chilling effect on whistleblowers' right to speak up and receive due compensation for their protected disclosures," said Sen. Grassley, a Republican from Iowa. "In order for the federal government to stay one step ahead of artificial intelligence, OpenAI's nondisclosure agreements must change."
OpenAI and the SEC did not immediately respond to requests for comment on Monday. The whistleblowers' letter specifically calls for the SEC to investigate whether OpenAI's NDAs required employees to waive their federal rights to whistleblower compensation. The letter also asks the SEC to fine OpenAI for each improper agreement made, to the extent the agency deems appropriate.
An SEC spokesperson, in an emailed statement, declined to comment on the existence or nonexistence of a possible whistleblower submission.
The whistleblowers allege that OpenAI's employment, severance, and non-disclosure agreements were overly restrictive, potentially leading to penalties against workers who raised concerns about the company to federal authorities. According to the letter, OpenAI required employees to obtain prior consent from the company before disclosing information to federal regulators. Additionally, OpenAI allegedly did not create exemptions in the employee non-disparagement clauses for disclosing securities violations to the SEC.
The letter also requests that the SEC require OpenAI to produce every contract containing a non-disclosure agreement, including employment agreements, severance agreements, and investor agreements, for inspection.
Sen. Grassley emphasized the importance of protecting whistleblowers in the rapidly evolving field of artificial intelligence. "Artificial intelligence is rapidly and dramatically altering the landscape of technology as we know it," he said. "OpenAI's policies and practices appear to cast a chilling effect on whistleblowers' right to speak up and receive due compensation for their protected disclosures."
The SEC's involvement is seen as crucial in ensuring that AI companies like OpenAI adhere to federal regulations designed to protect whistleblowers. The whistleblowers' call for action comes at a time when the capabilities and risks of generative AI, such as human-like conversations and image creation based on text prompts, are under increasing scrutiny.
OpenAI, which has recently formed a Safety and Security Committee led by CEO Sam Altman and other board members, is beginning to train its next artificial intelligence model. This move comes amid growing concerns about the safety and ethical implications of powerful AI models.
